VAALCO Energy, Inc. Announces Agreement to Divest Non-Core Asset

Rhea-AI Summary

VAALCO Energy (NYSE: EGY) agreed to sell its non-core producing properties in Canada for approximately CAD $35.0 million (USD $25.6 million), effective Feb 1, 2026, with expected close within ~30 days subject to customary conditions.

The Canadian assets produce ~1,850 BOEPD WI and the sale price equals 2.7x trailing 12‑month operational cash flow. The company said the transaction does not impact its borrowing base and follows CAD $82 million operational cash flow generated since acquisition.

Positive

• Proceeds of approximately CAD $35.0M (USD $25.6M)
• Sale equals 2.7x trailing 12-month operational cash flow
• Removes ~1,850 BOEPD of non-core production allowing focus on core drilling
• Transaction reportedly does not impact the company borrowing base

Negative

• Loss of ~1,850 BOEPD working interest production from company portfolio
• Transfer of future operational cash flow from those Canadian assets to buyer

Key Figures

Canadian Asset Sale price: C$35.0 million Sale price (USD): USD $25.6 million Canadian WI production: 1,850 BOEPD +5 more

8 metrics

Canadian Asset Sale price C$35.0 million Consideration for sale of Canadian producing properties

Sale price (USD) USD $25.6 million Approximate U.S. dollar equivalent of Canadian Asset Sale

Canadian WI production 1,850 BOEPD Current working interest production of divested properties

Effective date February 1, 2026 Effective date of the Canadian Asset Sale

Expected closing window 30 days Expected closing timeline from announcement date

Operational cash flow since acquisition C$82 million Operational cash flow generated by Canadian assets

Operational cash flow (USD) USD $64 million Approximate U.S. dollar equivalent of operational cash flow

Cash flow multiple 2.7x Sale price vs trailing 12 months operational cash flow

Market Reality Check

Price: $5.22 Vol: Volume 976,821 vs 20-day ...

normal vol

$5.22 Last Close

Volume Volume 976,821 vs 20-day avg 1,385,554 (relative volume 0.71x). normal

Technical Shares at $5.22, about 3% below 52-week high $5.38 and trading above 200-day MA at $3.78.

Peers on Argus

EGY was up 0.77% with mixed peer moves: SD (+1.17%), REPX (+0.95%), OBE and TBN ...

EGY was up 0.77% with mixed peer moves: SD (+1.17%), REPX (+0.95%), OBE and TBN (both +0.54%), while VTLE declined 1.16%, suggesting a stock-specific reaction rather than a broad sector move.

Historical Context

5 past events · Latest: Jan 15 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 15	Operational update	Positive	+5.8%	Full-year 2025 operational and financial update with stronger cash and receivables.
Dec 09	Drilling campaign	Positive	+2.3%	Spud of first well in Phase Three Gabon drilling program to enhance production.
Nov 20	Investor event	Neutral	-0.8%	Announcement of Water Tower Research fireside chat on 2026 growth plans.
Nov 10	Earnings update	Positive	+1.0%	Q3 2025 results with raised guidance and capital spending reductions.
Nov 10	Dividend declaration	Positive	+1.0%	Declaration of Q4 2025 dividend, marking 16th consecutive quarterly payout.

Pattern Detected

Recent news flow has been largely operationally and financially positive, with the stock typically posting modest gains following updates on drilling, operational performance, earnings, and dividends.

Recent Company History

Over the last several months, VAALCO highlighted growing production and sales, stronger cash balances, and reduced receivables in a Jan 15, 2026 operational update, which coincided with a 5.76% gain. Earlier, the company announced the Phase Three Gabon drilling program, a Water Tower Research fireside chat on potential 2026 volume growth, Q3 2025 results with raised guidance, and its 16th consecutive quarterly dividend, each linked to small positive price moves. The current non-core Canadian divestiture fits this pattern of portfolio-focused updates.

Market Pulse Summary

This announcement details the sale of VAALCO’s non-core Canadian producing assets for C$35.0 million...

Analysis

This announcement details the sale of VAALCO’s non-core Canadian producing assets for C$35.0 million (USD $25.6 million), equal to 2.7x trailing operational cash flow, and removes about 1,850 BOEPD of working interest production. It continues a series of operational and portfolio-focused updates following 2025’s drilling and financial progress. Investors may track how sale proceeds are allocated and how core drilling campaigns affect production, cash flow, and future disclosures.

Key Terms

working interest, boepd

2 terms

working interest financial

"The Canadian properties current working interest (“WI”) production is approximately"

The working interest is the percentage ownership one party holds in an oil or gas lease that gives them the right to a share of production and also the obligation to pay a proportional share of exploration, development and operating costs. Think of it like owning a slice of a cake but also agreeing to pay part of the bill to bake it: a larger working interest means bigger potential revenue when wells produce, but also larger exposure to costs and liabilities if things go wrong.

boepd technical

"working interest (“WI”) production is approximately at 1,850 barrels of oil equivalent per day (“BOEPD”)."

Barrels of oil equivalent per day (boepd) is a unit that converts all forms of hydrocarbon production—oil, natural gas and liquids—into the energy equivalent of barrels of crude oil and then reports the average output per day. Investors use boepd to compare production scale and growth across companies and projects the way you might compare total calories from different foods: it puts different fuels on a common, easy-to-understand basis for assessing revenue potential and operational efficiency.

AI-generated analysis. Not financial advice.

HOUSTON, Feb. 05, 2026 (GLOBE NEWSWIRE) -- VAALCO Energy, Inc. (NYSE: EGY, LSE: EGY) (“Vaalco” or the “Company”) today announced that it had entered into an agreement for the sale of all of its non-core producing properties in Canada to a third party for approximately $35.0 million Canadian Dollars (USD $25.6 million), subject to customary closing adjustments (the "Canadian Asset Sale"). The Canadian properties current working interest (“WI”) production is approximately at 1,850 barrels of oil equivalent per day (“BOEPD”). The effective date of the Canadian Asset Sale is February 1, 2026, and it is expected to close within the next 30 days, subject to satisfaction of the customary closing conditions.

George Maxwell, Vaalco’s Chief Executive Officer, commented, “Over the past several years, we have worked to increase liquids production in Canada, improve operational and drilling efficiencies, drilled some successful wells and generated $82 million Canadian Dollars (USD $64 million) in operational cash flow since our acquisition. While we believe that the Canadian assets are solid, we have decided to focus on our core assets with significant drilling campaigns and continued upside. With all of the recent successes in our assets and continued large scale drilling campaigns underway or planned in those areas, we determined that now was the right time to sell. This non-core asset sale for $35.0 million Canadian Dollars is equal to 2.7x¹ of our trailing 12 months operational cash flow and does not impact our borrowing base which allows us to focus on core opportunities. We are excited about the future and believe that Vaalco has many high-quality assets with significant drilling and development opportunities that we expect to generate meaningful value for our shareholders for many years to come.”

About Vaalco

Vaalco, founded in 1985 and incorporated under the laws of Delaware, is a Houston, Texas, USA based, independent energy company with a diverse portfolio of production, development and exploration assets across Gabon, Egypt, Côte d'Ivoire, Equatorial Guinea and Nigeria.

For Further Information

Vaalco Energy, Inc. (General and Investor Enquiries)	+00 1 713 543 3422
Website:	www.vaalco.com
Al Petrie Advisors (US Investor Relations)	+00 1 713 543 3422
Al Petrie / Chris Delange
Burson Buchanan (UK Financial PR)	+44 (0) 207 466 5000
Ben Romney / Barry Archer	VAALCO@buchanan.uk.com

Forward Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created by those laws and other applicable laws and “forward-looking information” within the meaning of applicable Canadian securities laws(collectively, “forward-looking statements”). Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. All statements other than statements of historical fact may be forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “forecast,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “may,” “likely,” “plan” and “probably” or similar words may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, statements relating to (i) estimates of future drilling, production, sales and costs of acquiring crude oil, natural gas and natural gas liquids; (ii) expectations regarding the completion and timing of the Canadian Asset Sale, the satisfaction of customary closing conditions related to the Canadian Asset Sale, and the proceeds that the Company expects to receive from the Canadian Asset Sale; (iii) expectations regarding future exploration and the development, growth and potential of Vaalco’s operations, project pipeline and investments, and schedule and anticipated benefits to be derived therefrom; (iv) expectations regarding future acquisitions, investments or divestitures; (v) expectations of future balance sheet strength; and (vi) expectations of future equity and enterprise value.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: risks relating to any unforeseen liabilities of Vaalco; the ability to generate cash flows that, along with cash on hand, will be sufficient to support operations and cash requirements; risks relating to the timing and costs of completion for scheduled maintenance of the FPSO servicing the Baobab field; and the risks described under the caption “Risk Factors” in Vaalco’s most recent Annual Report on Form 10-K.

Any forward-looking statement made by Vaalco in this press release is based only on information currently available to Vaalco and speaks only as of the date on which it is made. Except as may be required by applicable securities laws, Vaalco undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Inside Information

This announcement contains inside information as defined in Regulation (EU) No. 596/2014 on market abuse which is part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”) and is made in accordance with the Company’s obligations under article 17 of MAR. The person responsible for arranging the release of this announcement on behalf of Vaalco is Matthew Powers, Corporate Secretary of Vaalco.

^{___________________________________
1}Based on 12-month unaudited operational cash flow of approximately $9.7 million USD for the Canadian assets for the period ended December 31, 2025.

FAQ

What did VAALCO Energy (EGY) announce on February 5, 2026 about its Canadian assets?

The company announced an agreement to sell its Canadian non-core producing properties for approximately CAD $35.0 million. According to the company, the deal is effective Feb 1, 2026 and is expected to close within about 30 days subject to customary conditions.

How much production is included in the EGY Canadian asset sale and what is the effective date?

The sale covers Canadian properties with roughly 1,850 BOEPD working interest production. According to the company, the effective date is Feb 1, 2026 and closing is expected within the next 30 days, subject to closing conditions.

What are the financial terms of VAALCO's Canadian Asset Sale (EGY)?

The purchase price is about CAD $35.0 million (USD $25.6 million). According to the company, that price equals 2.7x trailing 12-month operational cash flow and is subject to customary closing adjustments.

Will the Canadian asset sale affect VAALCO's borrowing base or liquidity (EGY)?

According to the company, the transaction does not impact its borrowing base. Management said the sale allows focus on core assets while preserving borrowing capacity for planned drilling campaigns.

How much operational cash flow did the Canadian assets generate before the sale, per VAALCO (EGY)?

The company reported the Canadian assets generated CAD $82 million (USD $64 million) in operational cash flow since acquisition. According to the company, that historical cash flow supported prior drilling and operational improvements.